At the same time, total capital importation into Nigeria rose to $10.37 billion, an 83.8% increase compared with the same period in 2025. This is also a 61% rise from the previous quarter.

Telecoms barely registered in the inflow mix, while banking and finance absorbed most of the funds entering the country.

Banking alone pulled in $7.55 billion, while the financing sector followed with $2.43 billion. Together, they accounted for more than 96% of total inflows.

Most of the capital entering the country came through short-term instruments. Portfolio investment topped the list with about 95% of total inflows, and foreign direct investment small at $135 million, or roughly 1.3%.

Telecoms, by comparison, attracted just 0.07% of total inflows, trailing even trading, agriculture, IT services and equities.

The decline in the sector stands out when set against recent years. Telecom capital importation reached $496.27 million in 2025, while it stood at $456.59 million in 2024. In 2023, it dropped to $134.75 million, before rising again in 2022 to $456.83 million.

A steep drop was recorded in the latest quarterly figures as seen. Inflows fell 91% year-on-year from $80.78 million in Q1 2025 and also dropped 93% from $103.36 million in the previous quarter.

Policy changes in the sector have not shifted investor behaviour. Early in 2025, the Nigerian Communications Commission approved a 50% tariff adjustment for operators with an aim to improve revenue and support network expansion.

Operators also increased spending. The commission said telecom companies invested more than N2.5 trillion in infrastructure in 2025. That is over $1 billion in network upgrades.

Even so, foreign inflows did not follow, as investors appear more focused on fixed-income returns than long-term infrastructure commitments. High yields in money market instruments and bonds continue to draw capital.

This means money is coming in, but not where long-term investment is most needed.

Foreign exchange reforms have helped strengthen activity in banking. Still, volatility in the currency market still weighs on long-term decisions, especially in sectors like telecoms that require steady capital planning.

The International Finance Corporation and the World Bank have in past reports pointed to the need for stable, long-term investment conditions in infrastructure-heavy sectors. That gap is very much visible in the current data.

Heavy dependence on short-term inflows leaves productive sectors exposed. Telecoms, manufacturing and agriculture all receive limited foreign capital.

These risks must be looked into as foreign investment in Nigeria drives growth for telecom, banking and many other sectors.

The post Nigeria Telecom Foreign Investment Falls to 4-Year Low Despite $10.37bn Capital Surge appeared first on Tech | Business | Economy.

Despite recording steady growth in voice and internet subscriptions, the current figure, representing 106.97 million high-speed internet connections, suggests that the country will need to accelerate its broadband rollout dramatically within the final quarter to hit the target.

According to the NCC’s latest industry statistics, active voice subscriptions climbed to 173.54 million in September, up from 171.57 million in August. Internet subscriptions on GSM networks also grew to 140.36 million, while teledensity reached 80.05 percent, reflecting continued sectoral resilience.

However, experts say that closing the remaining 20 percent broadband gap within just two months would be “nearly impossible” given infrastructure, financing, and policy implementation challenges across several regions.

Government Pushes Infrastructure Expansion

Dr. Bosun Tijani, minister of Communications, Innovation, and Digital Economy, has continued to highlight government efforts to bridge the connectivity gap.

Speaking recently in Ogun State, the Minister revealed plans to deploy 90,000 kilometres of fibre optic cables nationwide, supported by a $500 million World Bank facility. the largest of its kind in the bank’s portfolio.

“The President decided that as a nation, we will invest in 90,000 kilometres of fibre optic network across this country. Every corner of our nation will be covered with fibre optic cables,” Tijani said.

To complement the initiative, Tijani announced the training of 5,000 young Nigerians in fibre technology, splicing, and deployment, in partnership with Coleman Wires and Cables, which recently launched West Africa’s largest fibre optic cable plant.

“This will begin in about two to three months and will strengthen our broadband ecosystem while creating skilled jobs for Nigerians,” the minister added.

Telecom Market Still Growing Strong

According to NCC data, MTN Nigeria retained its lead with 90.33 million subscribers (52.12%), followed by Airtel with 58.47 million (33.74%), Globacom with 21.39 million (12.34%), and T2 with 3.11 million (1.8%), a slight improvement from the previous month.

The GSM segment continues to dominate Nigeria’s telecommunications space, accounting for over 99 per cent of total mobile subscriptions.

Broadband penetration reached its highest level yet at 49.34 per cent, up from 48.81 per cent in August, with 4G technology maintaining 51.6 per cent market share and 5G adoption rising to 3.4 per cent, signaling gradual progress since its commercial launch in 2022.

Data Usage and Economic Impact

While broadband subscriptions increased, data usage dipped slightly to 1.15 million terabytes in September, from 1.152 million terabytes in August.

The telecom sector continues to play a critical role in Nigeria’s economy, contributing 9.2 per cent to GDP in Q2 2025, up from 8.5 per cent in Q1, despite macroeconomic headwinds and currency volatility.

Analysts attribute the sustained sectoral performance to rising demand for digital services, mobile penetration, and continued investments in network infrastructure by operators.

However, they warn that unless massive fibre deployment, last-mile connectivity projects, and right-of-way harmonization accelerate before year-end, Nigeria’s 70 per cent broadband dream may remain just that, a dream deferred.

The post BROADBAND: Nigeria Unlikely to Achieve 2025 Target as Penetration Stands at 49.34% appeared first on Tech | Business | Economy.

This proposal has resulted from continuously increasing operational challenges telecom companies in Nigeria are facing, primarily due to the surging costs of fuel and maintenance, which have made it difficult to sustain service quality.

NATCOMS has put forward the high financial pressures telecom operators have been under in recent years. Despite the alarming rise in operational costs, the last tariff adjustment in Nigeria was over a decade ago. 

According to Mr Adeolu Ogunbanjo, National President of NATCOMS, the telecom sector has been struggling to cope with the increasing cost of key resources such as diesel and petrol, which are essential for running telecom infrastructure. These operational challenges are made worse by unreliable power supply, particularly in remote areas, which further inflates the cost of keeping the networks functional.

The sharp increase in fuel prices in recent months has made it even more difficult for telecom companies to keep pace with the rising demand for their services. For instance, diesel prices have soared by over 200% in the past year alone, placing a huge burden on operators who depend on it to power base stations and other necessary infrastructure.

The Call for a Tariff Adjustment

The proposed 10% tariff hike is seen as an unignorable move to address the financial difficulties faced by telecom operators. Ogunbanjo has stressed that this increase is necessary not just for improving service quality but also for ensuring the sustainability of the industry. Without this adjustment, telecom companies may struggle to maintain and expand their infrastructure, which could lead to service degradation or even more severe network outages in the future.

Despite its possible impact on consumer expenses, the tariff hike is a way to avoid more drastic measures such as service rationing or “load shedding,” which could cripple key sectors of the economy. 

NATCOMS warns that without the necessary revenue boost, telecom companies may resort to limiting service availability in certain areas, prioritising high-revenue regions while leaving others underserved.

Service Rationing: A Potential Consequence

One of the more controversial solutions raised by operators in the sector is the idea of load shedding. In order to cut operational costs, some telecom providers have already started limiting service in specific regions, concentrating their efforts on areas where they generate the most revenue. 

This practice, akin to electricity rationing in certain parts of Nigeria, has raised talks about its possible effects on critical sectors such as banking, education, and healthcare. If implemented more widely, it could severely disrupt services that are increasingly reliant on consistent telecom access, from online banking to virtual healthcare consultations.

Ogunbanjo rejects load shedding as a viable solution, warning that it would have dire consequences for businesses and individuals who rely on telecom services for daily operations. “Rationing service like this would hurt many sectors—virtual meetings, online transactions, and more—would all be jeopardised,” he said.

Exploring Alternatives

Beyond tariff adjustments, Ogunbanjo suggests that government intervention in the form of subsidies or tax relief could also ease the burden on telecom operators. Added to this, there are calls for investments in alternative energy sources such as solar power to reduce the sector’s dependence on volatile fuel prices.

Moving towards renewable energy will enable operators to lower their operating costs and become more resilient to fuel price hikes.

The current situation tells us the importance of providing telecom operators with a conducive environment to operate, through clear and supportive regulations, so that they can invest in innovation and infrastructure. 

According to experts like Bismarck Rewane, managing director of Financial Derivatives, the telecom industry is currently in an “intensive care unit,” facing huge financial limitations. This points to the urgent need for both the government and the NCC to take quick action to safeguard the future of telecom services in Nigeria.

While the proposed 10% increase may seem burdensome for consumers, it is seen as necessary to maintain service quality and ensure the sustainability of the sector. However, in light of the potential adverse effects on business and essential services, stakeholders must consider all options, including government support and alternative energy solutions, to strike a balance between ensuring telecom sustainability and protecting consumers.

The post Telecom Subscribers Back Telcos for 10% Tariff Hike appeared first on Tech | Business | Economy.

A common factor in their success is the presence of a solid telecom infrastructure, providing the essential backbone for communication, data transfer, and technological innovation.

Silicon Valley’s explosive growth in the late 20th century wasn’t just about having innovative, smart and goal-driven entrepreneurs but also by access to early internet technologies and reliable broadband connectivity.

Similarly, Bangalore’s transformation into India’s Silicon Valley was closely tied to investments in IT and telecom infrastructure that enabled seamless global communication. 

Tel Aviv, now a global leader in cybersecurity and digital technologies, owes much of its success to government initiatives that prioritised telecommunications infrastructure, creating a fertile ground for tech-driven growth.

Hence, we can say cutting-edge telecom infrastructure is a non-negotiable foundation for any region aiming to become a global tech hub. It is the conduit through which innovation flows, enabling startups to scale, research to advance, and industries to thrive. Without this foundational infrastructure, even the most talented tech sectors are limited in their potential for global competitiveness.

The Connectivity Foundation for Nigeria: What Has Been Achieved?

The journey of Nigeria’s telecom industry began with the deregulation of the sector in 2001, which brought about private investments and competition. This led to the introduction of the Global System for Mobile Communications (GSM), bolstering mobile telephony in the country. 

Companies like MTN, Glo, and Airtel capitalised on this deregulation, quickly expanding their networks and making mobile telephony accessible to millions of Nigerians.

The launch of the first submarine cables, such as MainOne and Glo-1, further enhanced Nigeria’s connectivity by providing a strong backbone for internet services, enabling high-speed data transmission across continents. This development was a game-changer, allowing businesses, startups, and individuals to participate in the global digital economy.

The proliferation of Internet Service Providers (ISPs) and the subsequent increase in internet penetration was another achievement. By 2019, Nigeria had moved from 270,000 cellular subscriptions in 2001 to 185 million. 

The deployment of 5G technology is the latest leap forward, ushering in a new phase of ultra-fast internet and advanced digital services. This technology is expected to enable great innovations such as smart cities, IoT, and edge computing, supporting Nigeria’s mission to gain global competition when it comes to Africa’s digital growth.

Current Achievements

Today, Nigeria has a mobile penetration rate of over 90.7%, with more than 200 million active mobile connections. Internet access has also grown, with approximately 50% of the population now online, a great improvement in digital inclusivity. 

Federal government Initiatives to improve rural connectivity, such as the National Broadband Plan and Universal Service Provision Fund (USPF), have yielded positive results, bridging the digital divide and ensuring that even remote areas benefit from modern telecom infrastructure.

However, while connectivity is an important component of a thriving tech industry, it is not the sole determinant of global competitiveness. 

There remain issues related to the quality of service—high data costs, relatively low average internet speeds, and frequent disruptions—that need to be addressed for Nigeria to compete effectively with global tech hubs. 

Beyond the infrastructure, other factors such as a supportive regulatory environment, access to capital, and the availability of a skilled workforce are equally of importance.

Beyond Connectivity: The Competitiveness Prospects

The Digital Economy Shift

Transitioning from basic connectivity to a globally competitive digital economy demands more than inclusive internet access. It involves leveraging digital technologies to facilitate economic growth, innovation, and global partnerships. 

Nigeria, with its steadily growing tech industry, stands on the brink of this digital boom, bringing huge opportunities in sectors like financial technology (Fintech), e-commerce, and digital payments.

The Fintech sector, in particular, has been one of Nigeria’s most dynamic success stories. Startups like Flutterwave and Paystack are leading a financial advancement, offering seamless digital payment solutions for both local and international markets. 

Flutterwave has facilitated over 140 million transactions worth more than $9 billion, revealing its enormous potential for digital financial services. Likewise, Paystack’s $200 million acquisition by Stripe reiterates the global recognition of Nigeria’s Fintech sector and its ability to attract major international players.

In addition to Fintech, the e-commerce sector is ripe for growth. Digital marketplaces like Jumia have bolstered access to goods and services, allowing businesses to reach customers beyond geographical limitations. 

This growth doesn’t just boost economic activity but also ensures innovation and entrepreneurship, as more Nigerians leverage online shopping and digital payments. The proliferation of e-commerce platforms, combined with the ease of digital transactions, is changing Nigeria’s retail sector and building a more connected, digital environment.

However, the true competitive edge for Nigeria lies in its ability to move beyond digital access and become a hub for digital innovation, data-driven industries, and scalable tech solutions. This involves a coordinated effort to integrate artificial intelligence, cloud computing, and blockchain into the entire economy, driving productivity and helping the nation gain global recognition in the tech industry.

Talent Development & Retention

To fully attain a successful digital economy and the prosperity it brings, Nigeria must prioritise talent development and retention. While there’s potential in the tech sector, there’s also a m growing risk of losing skilled professionals to international opportunities if local prospects are not sufficiently attractive.

Building a competitive digital workforce starts with strengthening educational frameworks that emphasise STEM (Science, Technology, Engineering, and Mathematics) disciplines. Programs like Andela have already taken good steps in training software developers and building them with the skills needed to thrive in global tech markets. 

However, retaining this talent requires more than just technical education. Nigeria needs to build a supportive ecosystem that includes access to capital, mentorship, and a regulatory environment conducive to innovation.

Preventing brain drain is essential to sustaining long-term growth. The telecom and tech sectors must create pathways for local businesses and startups to thrive, ensuring that skilled professionals see opportunities to grow and innovate within Nigeria. 

Initiatives that connect young talent with investors and seasoned entrepreneurs could be essential in building a thriving local ecosystem. Building innovation hubs, startup incubators, and public-private partnerships will help Nigeria create an environment that incentivises its brightest minds to remain and contribute to the country’s digital acceleration.

Key Pillars for Competitiveness: What’s Missing?

Reliable Infrastructure

Despite progress in expanding connectivity, the country’s prospects as a global tech hub is constrained by the lack of reliable infrastructure. 

One of the most pressing issues is the inconsistent power supply. Frequent power outages, which are a routine occurrence across the country, severely disrupt both business operations and daily activities. 

For telecommunications and internet services to function optimally, reliable electricity is indispensable. Without it, the effectiveness of digital infrastructure is diminished, leading to inefficiencies that affect everything from data centres to mobile towers.

Again, rural areas remain under-served, with limited broadband access increasing the urban-rural digital divide. This lack of inclusion causes a huge barrier to growth in regions outside of major cities. 

Comparatively, Nigeria’s average internet speeds lag behind those of other emerging tech hubs. According to the Speedtest Global Index, as of 2024, Nigeria ranks 99th in mobile internet speed globally, with an average download speed of around 20 Mbps. In comparison, other emerging markets like India are averaging over 35 Mbps. This gap in speed and reliability limits productivity and innovation, making it harder for businesses to compete on a global scale. To fully leverage the possibilities of its connectivity, Nigeria must address these infrastructure shortcomings, particularly in power and broadband accessibility.

Innovation Ecosystem

While Nigeria is known for its entrepreneurial spirit, the country’s innovation ecosystem is still developing and lacks the necessary comprehensive support to facilitate large-scale technological advancements. 

Telecommunications companies must go beyond just providing internet access. They should play a key role in building the foundational infrastructure necessary for innovation—such as investing in data centers, cloud infrastructure, and establishing more innovation hubs.

Data centres, in particular, are essential for supporting the growth of emerging technologies like artificial intelligence (AI), blockchain, and the Internet of Things (IoT). Currently, Nigeria has a few key data centres, such as Rack Centre and MainOne, among others, but the country needs far more to meet growing demand. Without these facilities, Nigeria risks falling behind as other African countries, like Kenya and South Africa, aggressively expand their digital infrastructures.

Moving further, ensuring an innovation ecosystem requires collaboration between the private sector, government, and academic institutions. The success of tech hubs like Silicon Valley and Israel’s Startup Nation has shown the value of building an environment that encourages experimentation, provides funding opportunities, and connects startups with industry mentors. Nigeria can replicate such success, but it must scale up its innovation initiatives, particularly in areas such as AI, health tech, and fintech, to remain competitive.

Policy Frameworks & Regulation

Nigeria’s regulatory sector determines the direction and growth of its telecom sector. The Nigerian Communications Commission (NCC) has taken steps to create an enabling environment, but more needs to be done to keep up with the pace of technological advancement. 

A well-defined, forward-thinking regulatory framework is essential for ensuring innovation, encouraging investment, and protecting consumer rights.

The success of other nations are useful models. For example, India’s Digital India initiative—aimed at making the country a digitally empowered society—has resulted in an explosion of internet access, digital payments, and e-governance. 

Estonia’s e-Residency program is another prime example of how visionary regulatory frameworks can attract global investors and entrepreneurs by providing seamless digital services.

For Nigeria to thrive, the NCC must continue promoting fair competition, especially in the face of emerging technologies. Regulations need to be adaptive to developments in 5G, AI, and fintech, ensuring that the country stays at the fore of digital innovation. 

Policies that encourage private sector participation in building tech infrastructure, while also ensuring consumer data protection and cyber security, will be essential. 

Can Nigeria’s Telecom Sector Set the Pace for Economic Prosperity?

As we reflect on the subject matter at hand, we are inspired by the nostalgia, enthusiasm, challenges, and opportunities that Nigeria has encountered through its telecom industry in recent years.

This inspiration is reiterated in the words of Dayo Oketola, the former Editor of The Punch Newspaper, in his newly launched book, “The Catalyst: Nigerian ICT Evolution Through a Journalist’s Lens.” Oketola emphasizes that Nigeria’s telecommunications sector has attracted over $70 billion in investments and generated over 500,000 jobs in the country.

President Olusegun Obasanjo, who played a key role in the sector’s inception, chronicled the leapfrog development brought forth by this industry. His insights align with the huge opportunities that lie ahead.

Again, the Bill & Melinda Gates Foundation’s report, “Innovating to Zero!” highlights the essential role of digital technologies, including telecom, in tackling global challenges such as poverty and climate change. 

The publication underlines how leveraging innovation can drive sustainable development and economic growth, while improved connectivity enhances access to education, healthcare, and financial services, empowering underserved communities. Continued investment in technology is essential for facilitating solutions that combat inequality and promote progress.

With this context, we must examine the ripple effects of Nigeria’s telecom industry on the economy, particularly in the following areas:

1. Connectivity and Economic Growth

Improving telecom infrastructure can significantly boost economic development in Nigeria. With a growing mobile phone penetration rate—over 195 million active connections—enhanced connectivity enables businesses, particularly small and medium enterprises (SMEs), to access markets, streamline operations, and optimize supply chain management. This connectivity drives productivity and innovation across various sectors, from agriculture to manufacturing.

2. Education and Health

Telecommunications are important in enhancing education and healthcare delivery, especially in rural areas. A significant portion of the population still lacks access to quality education and healthcare services. Mobile technology can bridge this gap; e-learning platforms and telemedicine services provide vital resources, allowing students to learn remotely and patients to receive medical consultations without extensive travel.

3. Financial Inclusion

Nigeria is home to one of the largest unbanked populations globally. Telecom can improve financial inclusion through mobile banking and digital payment systems. Initiatives like mobile money services empower individuals to conduct transactions, save, and access credit, lifting many out of poverty and stimulating local economies, particularly where traditional banking infrastructure is inadequate.

4. Innovation and Entrepreneurship

The telecommunications sector has ignited a wave of innovation and entrepreneurship in Nigeria. Access to the internet and mobile services empowers startups to develop solutions tailored to local needs, such as e-commerce platforms, fintech applications, and agricultural tech solutions. This entrepreneurial ecosystem creates jobs and drives economic growth, positioning Nigeria as a burgeoning hub for innovation in Africa.

5. Global Collaboration

Telecommunications facilitate Nigeria’s integration into the global economy. Improved connectivity allows Nigerian businesses to collaborate with international partners, share knowledge, and access global markets. This interconnectedness is key for attracting foreign investment and addressing challenges such as health crises and environmental issues, where collaboration is vital.

However, considerable concern remains — how can Nigerian universities drive change within the telecommunications industry’s framework when there is a lack of sophistication in curricula and insufficient practical steps toward embracing the 21st century?

Countries like South Korea and Singapore ensure widespread high-speed internet access, enhancing innovation in education and healthcare. Estonia’s e-government model offers nearly 99% of services online, improving efficiency and transparency. 

In Kenya, M-Pesa has revolutionized financial inclusion for millions, while Singapore’s smart city initiatives integrate IoT for improved urban living. India’s Digital India initiative promotes digital literacy, and public-private partnerships in the UAE enhance service delivery.

What about Nigeria? Where do we stand in this global context?

This challenge extends to 5G innovation, where Nigeria has yet to fully capitalize on available opportunities. This issue mirrors the current lack of foreign direct investment, highlighting a pressing need for leadership to act decisively and harness the potential of the telecommunications sector as the “new oil industry.”

Addressing these gaps and leveraging the power of telecommunications will help Nigeria set the pace for economic prosperity.

The post From Connectivity to Competitiveness: How Nigeria’s Telecom Sector Can Bolster a Global Tech Hub appeared first on Tech | Business | Economy.

At a breakfast session hosted by the Lagos Business School, Pan-Atlantic University on June 5, 2024, leading voices in the private sector gathered to discuss the theme “Telecom Sector: The Fulcrum for Economic Dynamism in Nigeria.”

Keynote speaker Bismarck Rewane, CEO of Financial Derivatives Company, emphasized the telecom sector’s critical role in driving economic growth, innovation, and productivity across various industries.

Rewane, in his presentation titled, “Nigerian Economy on the Brink, Adapt or Collapse?” highlighted the sector’s challenges, including rising inflation, high operating costs, limited access to foreign exchange, regulatory burdens, multiple taxations, and state and local government extortion.

He stressed that these challenges are threatening the sector’s growth and development, citing MTN’s reported loss in 2023 financial year.

The expert’s comments align with telecom operators’ push for cost-reflective tariffs, which they deem necessary due to adverse economic headwinds.

Rewane emphasized that the current situation is having a detrimental impact on the sector’s growth and development, warning that the revenue potential from telecoms may start falling, leading to a ripple effect on other sectors.

“Big push theory posits that growth in one sector can stimulate growth in others through backward and forward linkages. The telecom sector has both forward and backward linkages to various sectors. This linkage to other sectors is vital for economic growth, innovation, and productivity across various industries making it a key enabler and driver of development in modern economies. If the telecom industry collapses, all other sectors will follow”, he added.

Other notable speakers, including Prof. Ali Bongo, echoed Rewane’s sentiments, stressing the need for government support and deregulation to ensure the sector’s survival.

They highlighted the sector’s growth potential, citing its 8% outperformance of GDP growth rate between 2019 and 2023.

The event examined the telecom sector’s critical role in Nigeria’s economic growth and development, with stakeholders urging the government to provide support and create an enabling environment for the sector’s growth.

As the telecom sector continues to face numerous challenges, experts warn that its decline could have far-reaching consequences for Nigeria’s economic dynamism.

The post Telecom Sector’s Survival Depends on Government Support, Experts Warn appeared first on Tech | Business | Economy.

Tax professionals, who are panellists at the ongoing 25th annual conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, have suggested that the incoming administration should lay their focus on tax harmonising and digitization, security, education, and stakeholder engagement as opposed to tax increment.

They made these suggestions while speaking on the theme, ‘‘stakeholders’ Perspective on Repositioning the African Tax System for Sustainable Revenue Generation: Nigeria as a Case Study.”

The panellists include; Killian Khanoba, partner, Pedabo, Esiri Agbeyi, partner, Private Clients and Family Business Leader, PwC Nigeria, Abdallah Ali-Nakyea, senior lecturer, school of Law, University of Ghana, Zainab Gobir, executive director, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Lolade Ososami, partner, Udo Udoma & Bello Osagie, who moderated the panel.

While Gobir expects diversity in policy-making, Agbeyi emphasised on the need for tax harmonisation, stressing that there are a lot of taxes coupled together, which increased the cost of doing business.

He said the telecom sector has over 40 taxes they pay across different governments, and noted that the right of way charges is also very high.

These situations he said impedes the country’s growth in the digital space and effectively affects financial inclusion.

Killian advised the incoming administration to put an end to the same mistakes that have been repeated for a while and instead look critically at those things affecting the productivity of business and employment generation in Nigeria.

“How do we give a boost to the small and medium scale enterprises so that they can employ more people and give them the opportunity to grow into bigger businesses, who will ultimately contribute to tax generation.” Killian said.

He also highlighted the need to improve on security, stressing that people need to feel secure.

According to Killian, Nigerians need to be educated on voluntary tax compliance, “So the more people are educated, the more likely they are to voluntarily pay taxes without any prompting.”

He also urged the government to employ transparency in dealing with Nigerians, who should have the perception that the government is actually working for them.

“People’s perception of democracy, people’s perception of the effectiveness of governance contributes to compliance with tax and contributes to the tax revenue generation.” Killian said.

He also raised the issue of the 54 different types of taxes in Nigeria, which he said contributes only about 18 percent to the country’s revenue.

“And if you look at the contribution to the tax backstage itself, most of these modern noise taxes I call them that. If you put them all together, they contribute just about 18 percent. So why do we have them yet they create the biggest distortion to the smooth operation of businesses in Nigeria,” Killian said.

Finally, the tax professionals highlighted the need to standardise the tax processes across authorities, and advised the incoming government to find possible ways to consolidate the country’s taxes, in order to simplify the process of tax compliance and digitalize the tax environment.

The post Tax Professionals Lament over 40 Taxes, Burdens on Telecom Sector appeared first on Tech | Business | Economy.